NOT  FOR  CIRCULATION 


FOR  PERSONAL  USE  OF  TRUSTEES  ONLY 


STATEMENT  OF  THE  BUSINESS  MANAGER 

JUNE  14,  1904 

TO  THE  BOARD  OF  TRUSTEES  NORTHWESTERN  UNIVERSITY 


Relating  to  the  financial  transactions  of  the  first 

ELEVEN  MONTHS  OF  THE  FRESENT  FISCAL  YEAR,  JULY  I,  I9O3,  TO  JUNE  I,  I9O4, 
ALSO  CERTAIN  OTHER  ITEMS  OF  INTEREST 


OFFICE  OF  BUSINESS  MANAGER 


NORTHWESTERN  UNIVERSITY 


Evanston,  III.,  June  14,  1904. 


To  the  Board  of  Trustees  Northwestern  University: 

I respectfully  submit  the  appended  statements: 

No.  1 : A general  statement  with  remarks  and  explanations  relative  to  cash 
receipts  and  disbursements  for  the  period  from  July  1st,  1 903,  to 
June  1st,  1904. 

No.  2:  A general  statement  showing  receipts  and  disbursements  on  Budget 
and  Sundry  Accounts  with  the  estimated  income  and  the  appropria- 
tions against  them  (made  early  in  the  year),  for  comparison  with 
explanatory  notations. 

No.  3:  An  itemized  statement  of  receipts  and  disbursements  on  all  other 
accounts  except  the  bugdet  account. 

No.  4:  A condensed  statement  showing  increases  and  decreases  in  assets  and 
liabilities  affected  by  cash  transactions  during  the  period  named. 

No.  5:  An  itemized  statement  showing  the  increases  and  decreases  in 
assets  and  liabilities  affected  by  cash  transactions  during  the  period 
named. 

No.  6:  A comparative  statement  of  total  yearly  cash  receipts  and  total 
yearly  cash  disbursements  for  the  period  from  September  1st,  1894, 
to  June  1st,  1904,  showing  in  totals  annual  budget  income  receipts 
and  annual  budget  income  disbursements;  also  in  totals  annual  cash 
receipts  and  annual  cash  disbursements  on  asset  and  liability  ac- 
counts. 

No.  7.  Statement  of  assets  and  liabilities  June  1st,  1904. 

Under  the  present  system  of  accounting,  recently  installed,  statements 

like  the  above  can  be  prepared  from  the  books  with  little  trouble  and  expense 

by  any  well  qualified  accountant,  and  can  be  verified  easily  by  the  books 

themselves,  which  I would  be  pleased  to  have  you  examine  and  inspect. 


Very  respectfully  }murs, 


Business  Manager. 


STATEMENT  No.  1. 


STATEMENT  RELATIVE  TO  ANNUAL  BUDGET. 

First  Eleven  Months  of  Fiscal  Year,  namely 
from  July  i,  1903,  to  June  i,  1904. 


The  budget  sets  forth  the  estimated  income  from  rents,  interest,  tuition, 
fees,  etc.  It  also  sets  forth  the  estimated  expenditures  for  all  fixed  charges 
such  as  interest,  insurance,  maintenance  of  property,  pay  rolls,  supplies, 
materials,  etc. 

It  makes  no  reference  to  any  possible  receipts  from  the  sale  of  property, 
real  or  personal,  from  gifts,  from  changes  in  investments,  from  insurance,  etc. 
These  are  called  Sundry  Accounts. 

It  makes  no  appropriation  to  reduce  the  liabilities  of  the  University  or 
to  increase  its  assets  except  as  they  may  be  increased  by  added  equipment,  etc. 


BUDGET  ESTIMATES— DRAFT  OF  OCTOBER,  1903,  Etc. 

The  estimated  Income  (October,  1903) 

for  the  fiscal  year  was $ 518,254.88 

The  estimated  Expenses  (October, 

1903,)  for  the  fiscal  year  were.  512,181.87 


Unappropriated  estimated  income.  . $ 6,073.01 


Subsequent  appropriations  from  income 

have  been  amounting  to $ 9,471.43 

Making  a total  appropriation  from 

income 521,653.30 


BUDGET  INCOME  RECEIPTS. 

Estimated  Income  as  above  stated  . . .$  518,254.88 
Actual  Income  to  June  1st,  1904,  as 

shown  in  Statement  No.  2 504,228.36 

Balance  to  be  collected  by  Juty  1st,  ac- 
cording to  this  calculation $ 14,026.52 


JUNE  BUDGET  RECEIPTS  ESTIMATED. 

I estimate  our  income  from  June  1st  to 
July  1st  (close  of  fiscal  year)  as 
about * 19,500.00 

I make  this  estimate  on  the  following 
basis : 

That  we  will  receive  during  the  month 


of  June  rent  from  Evanston  lease- 
holders   $ 4,400.00 

Booth  Building 3,000.00 

Dock  property,  and  Maxwell  St.  prop- 
erty  220.00 

Improved  property  in  Evanston  ....  450 . 00 

Willard  Hall  receipts 700 . 00 

College  Receipts 115.00 

Academy  receipts  320 . 00 

School  of  Music 908 . 80 

N.  U.  Building  Rents 3,199.97 

Law  School 436 . 00 

Pharmacy  School 264 . 00 

Dental  School 1,535.80 

Medical  School 4,000.00 


Making  a total $ 19,549.57 


I believe  the  estimate  is  a reasonable  one,  and  if  it  holds  good  our 
income  receipts  will  exceed  estimates  made  last  October  by  $5,523.05. 

BUDGET  DISBURSEMENTS. 

Present  appropriation  of  Budget  in- 
come, as  shown  above  is  $ 521,653.30 

Additional  appropriations  made  from 
Special  Expense  and  other  funds 
not  income  proper 5,141.89 


Total  appropriations  for  the  year  as 
shown  in  first  column  in  statement 

No.  2 column  No.  1 

Actual  disbursements  to  June  1st,  as 
shown  in  statement  No.  2,  column 
No.  2 


$ 526,795.19 
507,876.81 


Budget  appropriations  unexpended 
June  1st  


18,918.38 


JUNE  BUDGET  DISBURSEMENTS  ESTIMATED. 


I estimate  our  budget  income  disburse- 


ments from  June  1st  to  July  1st 

(close  of  fiscal  year)  to  be  about . . 38,000 . 00 


I make  this  estimate  on  the  following 
basis : 

Payroll $ 23,500.00 

Insurance 763.50 

Evanston  Hospital  250.00 

University  General  and  Evanston 

Departments 6, 100 . 00 

Chicago  Departments 7,223.84 


.1  37,837.34 


BUDGET  DEFICIT  ESTIMATED  FOR  THE  YEAR. 

Summary  relating  to  Budget  account  as  follows: 

Total  Budget  disbursements  as  per  Statement  No.  2, 

Column  No.  2 $ 507,876.81 

Total  Budget  receipts  as  per  Statement  No.  2,  Column 

No.  5.  504,228 . 36 


Budget  apparent  debit  balance 3,648.45 

Add  to  this 

Estimated  Budget  disbursements  for  June  as  per  above,  37,887.34 


Total  S 41,535.79 

Deduct  from  this 

Estimated  Budget  receipts  for  June  as  per  above 19,549.57 


Would  make 

Apparent  deficit  in  Budget  account  for  year 8 21,986.22 

Deduct  from  this 

Expenditures  made  through  Budget  account  during  the 
year  appropriated  from  Special  Elxpense  and  other 


General  Ledger  accounts  (referred  to  above) 5,141 .89 

Will  give  estimated  Budget  deficit  for  the  fiscal  year 

ending  June  30,  1904,  of . . . $ 16,844 . 33 


RELATIVE  TO  BUDGET  BALANCES 

AND  SUNDRY  ACCOUNTS. 

In  statements  made  in  March,  April  and  May  to  the  Finance  Committees 
the  budget  receipts  were  far  in  excess  of  the  budget  expenditures,  and  cash 
and  sundry  accounts  showed  an  equal  debit  balance. 

These  balances  fluctuate  greatly  during  the  year.  In  the  summer  months 
when  there  is  no  tuition  income  the  sundry  accounts  are  called  on  to  finance 
the  Institution  for  several  months.  When  students'  tuition  and  fees  are  paid 
the  debit  balance  of  the  budget  account  is  wiped  out,  and  this  account  in  turn 
for  several  months  takes  care  of  financing  the  Institution,  etc. 

Statement  No.  6 shows  the  great  magnitude  at  times  of  the  sundry  ac- 
counts. Large  temporary  loans  are  frequently  needed  to  finance  the  opera- 
tions of  the  University. 

The  ideal  way  to  avoid  this  condition  is  such  an  increase  in  the  unres- 
tricted endowment  that  the  Institution  can  live  not  only  within  its  income 
but  save  enough  out  of  it  to  create  gradually  a working  capital. 

The  Executive  Committee  has  inaugurated  the  policy  of  selling  some  of  the 
non-productive  lands  in  Evanston.  In  so  far  as  this  results  in  decreasing  our 
debt,  it  is  in  my  opinion,  wise.  Though  it  decreases  assets,  it  also  decreases 
liabilities  and  thus  places  the  University  in  a safer  position,  and  a saving  in 
interest  charges  will  be  a great  relief. 

Statement  No.  2,  column  2 and  column  5,  show  that 

We  have  disbursed  on  sundry  accounts  from  Sept.  1, 

1903,  to  June  1,  1904.  .“ $ 163.482.74 

We  have  received  on  sundry  accounts  from  Sept.  1, 1903, 

to  June  1,  1904 ' 162,369.63 

Disbursements  exceeding  receipts  by $ 1,113. 11 

This  balance,  together  with  the  budget  balance,  is  fully  accounted  for  in 
the  Cash  Statement  appearing  in  Statement  No.  2. 


STATEMENT  No.  2 


GENERAL  STATEMENT  OF  RECEIPTS  AND 
DISBURSEMENTS. 

from  July  i,  1903,  to  June  i,  1904. 


1 

2 

3 4 5 

6 

Appropri- 
ations for 

THE  YEAR 

Disburse- 
ments to 
Date 

Department 

Receipts  to  Date 

Estimated 
Income  of 
the  Year 

Income 

Sales  and 
Rebates 

Totals 

109.882.32 
20,713.62 
12,123.92 

116.144.33 
22,080.76 
31,758.42 
27,038.35 
27,918.72 

25.435.00 

61.250.00 
72,449.75 

1 08,584 . 62 
22,600.05 
11,395.85 
106,905.41 

19.714.59 
27,101.38 
34,275.26 
25,721.49 
23,278.41 

57.571.59 
70,728.16 

1 University  General 

2 Willard  Hall 

3 Orriiutton  Lunt  Library  . . . 

145,688.02 

21,513.45 

503.28 
49.20 
6.45 
430 . 00 
31.50 
1,108.20 
347.81 
501.87 
4.28 
107.21 

146,557.96 

22,671.52 

4 College 

5 Academy  

6 School  of  Music  . . . 

7 N.  11.  Bldg,  and  Univ.  Gen 

8 Law  School  

9 Pharmacy  School  . 

10  Dental  School  .... 

1 1 Medical  School .... 

Budget  Totals 

12  Sundry  Accounts.  . 

Grand  Totals 

53.726.67 
15,060.75 
34,019.91 

24.061.67 
16,142.04 
28,562.70 
81,287.49 
81,075.86 

52,253.19 

15.000. 00 
31,068.21 

28.000. 00 

23.000. 00 

30.000. 00 

96.000. 00 
73,704.00 

526,795 . 19 

507,876.81 

163,482.74 

501,138.56 

3,089.80 

504,228 . 36 
162,369.63 

518,254.88 

671  359.55 

666,597 . 99 

Cash  Statement 

Receipts  as  per  above .... 

666,597.99 

28,306.41 

Apparent  overdraft  June  1st,  1904. 

Paid  overdraft  of  July  1st,  1903.  . 

23,544.85 
671,359 . 55 

Disbursements  as  per  above.  . . 

Budget  Account 

Budget  Disbursements,  as  per  above 

694,904.40 

694,904.40 

507,876.81 
504,228 . 36 

Receipts,  as  per  above 

Budget  Debit  Balance  June  1st 

3,648.45 

521,653.30 
5,141 .89 

Budget  Appropriations 

From  Income 

From  Special  Expense  Fund  and  other  Gifts  . ... 

Total  as  shown  above 

526,795 . 19 

5,141.89 

3,64S,45 

Budget  Account,  June  1,  1904 

Amount  due  to  clear  Spl.  Exp.  Fund  and  other  appropriations  . 

Debit  Balance  as  per  above 

Budget  Credit  Balance  June  1st  (Actual) 

1,493.44 

163,4S2. 74 
162,369.63 

Sundry  Accounts 

Disbursements  as  per  above 

Receipts  as  per  above 

Difference 

1,113.11 

STATEMENT  No.  3. 


SUNDRY  ACCOUNTS. 

STATEMENT  OF  TOTAL  RECEIPTS  AND 
DISBURSEMENTS. 

from  July  ist,  1903,  to  June  ist,  1904. 


DISBURSE- 

MENTS. 

RECEIPTS. 

Academy  Profit  and  Loss  Account 

$ 286  1 7 

824 . 00 

590.00 
58 . 30 

American  Institute  of  Germanics 

Alumni  Record 

Athletic  Association  

1,009 . 5C 
310.29 

76.700.00 
2,745 . 72 
3,000.00 

12.900.00 

Bills  Payable  

Bills  Receivable — Sundries  

Bills  Receivable — Endowment  Investments 

Bonds  of  1913  

70,000.00 

2,488.05 

10,350.00 

Baker,  Adaline 

60.00 

Buildings  and  Lands  used  for  educational  purposes 

257 . 50 
7,126  06 
498 . 48 
349  28 

Coal  Account  

7,650  03 
588.07 
142.33 
41.92 
376 . 70 
5.68 
7,179.08 
85 . 77 
225 . 00 

College  Y.  M.  C.  A 

Chapin  Hall  Expense  . 

College  Conference 

College  Profit  and  Loss  Account 

18.00 

Contribution  to  Law  School 

Cash  in  hands  of  Agents 

Dormitory  Fire  Loss  Account 

1,769.14 

Donations  to  German  Department 

Dental  School  Profit  and  Loss  Account 

835 . 22 

Donation — M.  H.  Wilson 

50.00 
753 . 80 

75 . 00 
1,946.68 
5,682.61 

100.00 
100.00 
1,000.00 
670 . 00 

Fisk  Celebration 

Grand  Stand  Fire  Loss  Insurance 

1,399.95 

Gary  Collection  and  Disbursements 

Garrett  Biblical  Institute 

4,052.58 
227  09 

Gift — M.  C.  Bragdon  (College  Furniture) 

Gift — Dr.  N.  S.  Davis,  Sr.,  (Medical  Research  Fund) 

Endowment — Dr.  N.  S.  Davis,  Sr., (Davis  Pro’ship  Physiology)  . . 

Hull,  MaryH.  ‘ T ... 

257 . 90 
2,151 .58 

4.700.00 
159.97 

2.500.00 
110.38 
898 . 50 

50.00 
765.26 
16,738.57 
1,815.79 
75.75 
62 . 50 

Hendricks,  H.  P.,  Clerk  (Office  Cash) 

James,  James  A. — Loan  Account  . 

Kendall,  11.  B 

495 . 00 
2,500.00 
60.50 

Law  School  Rent  Account 

Law  School  Profit  and  Loss  Account  

Law  School  Library  and  Equipment 

Marcy  Scholarship 

Maynard,  H.  S.,  Cashier  

1,834.05 
27,379.00 
1,892.17 
75 . 75 
6,250.00 
2,567 . 50 
23.00 

N.  U.  Building  Fire  Loss  Account 

Pharmacy  Book  Account 

Parkhurst,  Mary  H 

Real  Estate — Non-Productive 

Real  Estate — Productive 

Students’  Printing  Account — Law 

Special  Expense  Fund  (against  no  appropriation)  . . . 

79.37 

250.27 

105.68 

150.00 

193.63 

1 .536 . 00 

2.600.00 
5,473.75 
6,898.95 

State  Bank  of  Evanston  (Law  School  Special) 

Summer  Salary  Account 

Secondary  School  Conference  

606 . 45 
87 . 00 
119.00 
1,362.37 
2,600.00 
3,928  00 

Students’  Loan  Fund 

School  of  Oratory  

Tuition  Notes 

Tremont  House  (Old  Bills) 

Trust  Fund — Class  of  1906  

100.00 

Taxes  and  Assessments  on  Leaseholders’  Accounts  

1,414.01 
. 205  85 

University  General  Profit  and  Loss  Account 

75.00 
171 .82 

Woman’s  Medical  School  Account 

Total  Disbursements 

804 . 05 

$ 103,4S2 . 74 

“ Receipts 

K 102.309.63 

STATEMENT  NO.  4. 


GENERAL  STATEMENT  SHOWING  INCREASES  AND  DECREASES 
IN  ASSETS  AND  LIABILITIES  AS  AFFECTED  BY  CASH 
RECEIPTS  AND  DISBURSEMENTS. 


From  July  i,  1903,  to  June 

I,  1904. 

Liabilities — Decreased  by  Cash  Disbursements: 

Bills  Payable 

19,600.00 
633  25 

Sundry  Department,  Profit  and  Loss  Account 

Buildings  and  Lands — Educational 

Accounts  Payable 

257.50 

10,922.86 

Total  Liability  Decreased. . 

31,413.61 

Less  Liabilities  Increased  by  Cash  Receipts: 

Overdraft  at  Bank  increased. 

4,761  56 

Gifts — Trust  Funds  and  Endowments 

Accounts  Pavable 

3,521.68 

11,979.96 

Total  Liability  increased.  . . 

20,263.20 

Net  Decrease  in  Liabitilies 

11,150.41 

Assets — Decreased  by  Cash  Receipts  : 

Cash  in  hands  of  Agents 

8,247.87 
10,350.00 
2,488 . 05 

6.187.50 

2.567 . 50 
6,540.26 

Bills  Receivable — Endowment  Funds  . 

Sundries 

Non-productive  Real  Estate — Sales  . 

Productive  Real  Estate.  . . . 

Accounts  Receivable 

Total  Assets  Decreased 

36,381.18 

Less  Assets  Increased  by  Cash  Disbursements: 

N.  U.  Building  (old  bills  paid)  

6,898  95 
898  50 

Law  Library  and  Equipment  . . . 

Bills  Receivable — Tuition  Notes 

1,545.75 
3,000.00 
2,745 . 72 
6,493.40 

Endowment  Funds 

Sundries 

Accounts  “ 

Total  Assets  increased  

21,582.32 

Net  Decrease  in  Assets. 

14,798.86 

3,648.45 

I he  difference  between  Net  Decrease  in  Assets  and  Net  Decrease  in  Liabilities,  viz.: 
3,646.45  is  amount  due  from  Budget  Account  June  1, 1904,  as  shown. 

Itemized  Statement  of  the  above  is  appended  hereto. 


STATEM 

COMPARATIVE  STATEMENT  OE  TOTAL  YEARLY  CASH 

FOR  THE  PERIOD  FROM  SE1 

Showing  Annual  Budget  Income  Receipts  and  Annual  Bu 

Annual  Cash  Disbursements  on  S 


Sept.  1,  1894, 

Sept.  1,  1895, 

Sept.  1,  1896, 

Sept.  1 , 1897, 

Cash  Receipts. 

TO 

TO 

TO 

TO 

Sept.  1,  1895. 

Sept.  1,  1896. 

Sept.  1,  1897. 

July  1,  1898. 

University,  General 

1 

61,339.29 

.«  15,972.97 

$ 40,443.25 

.$  89,574.90 

Willard  Hall 

2 

21,128.73 

20,225 . 65 

20,465 . 28 

16,196.71 

Orrington  Lunt  Library 

3 

College 

4 

26,816.61 

30,469 . 29 

28,797  66 

36,298.57 

Academy 

5 

14,219.37 

13,574 . 55 

11,848.29 

12,838.76' 

School  of  Music 

6 

10,337.08 

12,539.00 

15,858  94! 

N.  U.  Building  & City  Univ’  Gen’l. . . 

7 

Law  School 

8 

15,628.60 

19,853.40 

18,829.77 

14,026 . 23 

Pharmacy  School 

9 

35,121.50 

30,313.99 

25,180.81 

20,414.27 

Dental  School 

10 

17,454.31 

17,640.34 

68,162.44 

50,001.71 

1 

Medical  School 

11 

30,684.26 

32,963  11 

35,785.47 

43,208.97 

1 

Woman’s  Medical  School  

12 

9,848.35 

10,935.50 

10,346.68 

8,570.00 

1 

Yearly  Income  Receipts 

$ 232,241.02 

$ 202,285.88 

■1  272,398.65 

$ 307,049.06 

Receipts  on  Sundry  Accounts  . . 

13 

275,498 . 63 

253,746.10 

1,156,035.26 

154,170.28 

1 

*Total  Yearly  Receipts 

$ 507,739.65 

$ 456,031.98 

$1,428,433.91 

$ 461,225.34 

Sept.  1,  1894, 

Sept.  1,  1895, 

Sept.  1,  1890, 

Sept.  1,  1897, 

Cash  Disbursements. 

TO 

TO 

TO 

TO 

Sept.  1,  1895. 

Sept.  1,  1896. 

Sept.  1,  1897. 

July  1,  1898. 

University  General 

1 

$ 10,500.01 

$ 12,525.61 

$ 19,569.31 

$ 33,220.40 

Willard  Hall 

2 

20,187.91 

17,533.81 

19,109.95 

16,747.79 

Orrington  Lunt  Library 

3 

3,056 . 59 

2,610  04 

3,818  60 

College 

4 

66,663.77 

60*174.41 

61,118.43 

75,078.30 

Academy 

5 

19,692.89 

18,732.00 

19,056.44 

17,591 .85 

School  of  Music 

6 

10,337.08 

12,539.00 

15,858  94 

N.  U.  Building  & City  Univ’  Gen’l..  . 

Law  School 

8 

16,664.06 

17,694.92 

17,798.41 

15,765.72 

Pharmacy  School 

9 

31,784.22 

33,639.35 

30,462.88 

26,324.88 

Dental  School 

10 

23,397.18 

22,931 .02 

67,905  03 

47,918.52 

Medical  School 

11 

29,756.31 

35,352 . 39 

32,665.07 

31,928.77 

Woman’s  Medical  School 

12 

8,692.23 

9,221.17 

9,849.65 

18,317.25 

Yearly  Income  Disbursements  . 

$ 227,338.58 

$ 241,198.35 

$ 292,684.21 

$ 302,001  02 

Disbursements  on  Sundry  Accts  . 

13 

279,625.85 

213,992.11 

1,149,848.70 

125,882.80 

*Total  Yearly  Disbursements  ... 

$ 506,964.43 

$ 455,190.46 

$1,442,532.91 

$ 428,483.82 

*Totals  do  not  include  office  clearances,  except  in  1903  and  1904.  f Department  Disbursements  o' 


CASH  STATEMENT. 


Sept.  1,  1894  — Cash  Balance  on  hand 

Receipts  for  the  period 

•$7  133  411  54 

$ 1,843.69 

7,103,261.44 

28,306.41 

June  1,  1904 — Apparent  overdraft 

$7,133,411.54 

$7,133,411 .54 

STATEMENT  No.  5. 


ITEMIZED  STATEMENT  SHOWING  INCREASES  AND  DECREASES 
IN  ASSETS  AND  LIABILITIES  AFFECTED  BY  CASH 
RECEIPTS  AND  DISBURSLMENES. 

From  July  ist,  1903  to  June  tst,  1904. 


Liabilities — Decreased  by  Cash  Disburse- 
ments: 

Hills  Payable — At  Bank 

Curtis  Notes 

Bonds  of  1913 

Crews  N otes  

Sundry  Dept.  Profit  and  Loss  Accts 

Buildings  and  Lands  (Educational) 

Accts.  Payable — Dormitory  Fire  Acet . . 

Gary  Fund  Disbursements 
James  A.  James  Loan  Acet 
Summer  Salary  Accounts. 
Special  Expense  Fund 
Students’  Loan  Fund  . . 


Total  decrease  in  Liabilities  by  cash  Disburse- 
ments   

Less  Liabilities — Increased  by Cash  Receipts 


Gifts,  etc. — M.  H.  Wilson 

50 . 00 

M.  C.  Bragdon 

loi)  oo 

To  German  Department 

225 . 00 

Gary  Collection 

1,946.68 

Trust  Funds,  N.  S.  Davis,  Sr.,  (Med.  Kerch.) 

100.00 

('lass  of  1906 

100.00 

Endowments — N.  S.  Davis,  Sr.( Davis  Prof’p) 

1,000.00 

Accts.  Payble — Am.  Institute  of  Germanics 

303.83 

N.  U.  Building  Fire  Loss.  . . 

10,640.43 

College  Y.  M.  (’.A 

89 . 59 

Mary  H.  Hull 

412  10 

Grand  Stand  Fire  Loss 

75.00 

R.  B.  Kendall 

335  03 

College  Conference 

41 .92 

Contribution  to  Law  School 

5.68 

Pharmacy  Book  Account  . . 

76.38 

Total  increase  in  Liabilities  by  cash  Receipts 
Net  Decrease  in  Liabilities  for  the  Period 

AFFECTED  BY  CASH  TRANSACTIONS 

Assets — Decreased  by  Cash  Receipts: 

Cash  in  hands  of  Agents 

Bills  Receivable — Endowment  Fund 


5,000  00 
300.00 
12,900.00! 
1, 400.001 


1,083.38 
4,052.58 
4,700.00 
63 . 00 
250  2 
173  63 


),600. 00 
633.25 
257.50 


31,413.61 


4,701.50 


3,521.68 


11,979.96 


8,247.87 


Hall 

2,000.00 

Orchard 

350.00 

Ullrich 

2.000.00 

Garrett  Biblical  Institute. 

3,000.00 

M.  B.  Dyche 

3,000.00 

10,350.00 

Bills  Receivable — Sundries 

Blake 

20.00 

Umbria 

10.00 

Lyman 

4.00 

H ousel 

300.00 

Cummings 

1,000.00 

James,  J.  A 

154.05 

Towle 

1 ,000 . 00 

— 

2,488.05 

Non-productive  Real  Estate  Sales 

6,187.50 

Productive  Real  Estate  Sales 

2,567.50 

Accts.  Receivable — Adaline  Baker.  . 

60.00 

Coal  Accounts 

523  97 

Garrett  Biblical  Institute. 

5,455  52 

State  Bk.  of  Ev.  (Law) . . 

500.77 

6,540.26 

Total  Decrease  in  Assets  by  Cash  Receipts 

Less  Assets — Increased  by  Cash  Disbburse- 

me  nts: 

N.  U.  Building — Old  Bills  Paid 

6,898.95 

Law  Library  and  Equipment.  . . 

898.50 

Bills  Rec’ble — Tuition  Notes — College  and 

Academy 

1,5.45.75 

Bills  Rec’ble — Endowment  Funds — M.  B. 

Dvche 

3,000.00 

Bills  Recei vable — Sundries — 

Child 

74.  OS 

Jewell 

175  00 

Lvman 

4 00 

Vail,  HI.  A 

1 .000 . 00 

1 owle 

1 ,482  64 

Umbria 

10.00 



2,745.72 

Accts.  Rec’ble — Alumni  Record 

951  20 

Athletic  Association  . 

310.29 

Fisk  Celebration 

646.15 

Marcy  Scholarship 

50.00 

H.  P.  Hendricks,  Cashier 

2,151 .58 

Secondarv  School  Confer’ce  . 

74.62 

Leaseholders’  Accts.,  Taxes 

and  Assessments 

1,414.01 

Students’  Printing  Acct.  L’w 

56.37 

A\  Oman’s  Med’l  School  Acct 

632.23 

Chapin  Hall 

206.95 

6,493.40 

Total  increase  in  Assets  l>v  Cash  Disb’mts 

Net  Decrease  in  Assets  for  the  Period 

Affected  by  Cash  Transaction. 

20,263 . 20 


30,381 . 18 


21,582.32 


14,798.86 


3.648.45 


1 he  difference  between  the  decrease  in  Assets  and  decrease  in  Liabilities,  viz.:  3 648  45 
is  the  amount  due  from  Budget  Account  June  1,  1904. 


STATEMENT  No.  6. 

COMPARATIVE  STATEMENT  OF  TOTAL  YEARLY  CASH  RECEIPTS  AND  TOTAL  YEARLY  CASH  DISBURSEMENTS 

FOR  THE  PERIOD  FROM  SEPTEMBER  i,  1894,  TO  JUNE  1,  1904. 

Showing  Annual  Budget  Income  Receipts  and  Annual  Budget  Income  Disbursements,  also  Annual  Cash  Receipts  and 

Annual  Cash  Disbursements  on  Sundry  Asset  and  Liability  Accounts. 


Cash  Receipts. 

Sept.  1,  1894, 

TO 

Sept.  1,  1895. 

Sept.  1,  1895, 

TO 

Sept.  1,  1896. 

Sept.  1,  1896, 

TO 

Sept.  1,  1897. 

Sept.  1,  1897, 

TO 

July  1,  1898. 

July  1,  1898, 

TO 

July  1,  1899. 

July  1,  1899, 

TO 

July  1,  1900. 

Jul-^J,  1900, 

TO 

July  1,  1901. 

July  1,  1901, 

TO 

July  1,  1902. 

1 

2 

3 

4 

5 

0 

7 

8 

9 

10 

11 

12 

13 

July  1,  1902, 

TO 

July  1,  1903. 

July  1,  1903, 

TO 

June  1,  1904. 

Sept.  1,  1894, 

TO 

June  1,  1904. 

University,  General 

Willard  Hall 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

61,339.29 

21,128.73 

$ 15,972.97 
20,225 . 65 

$ 40,443.25 
20,465 . 28 

$ 89,574.90 
16,196.71 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

$ 95,982.01 
16,649.63 

$ 101,380.33 
21,503.38 

$ 107,370.42 
19,614.73 

$ 124,434.97 
18,017.62 

$ 147,787.03 
22,271 .52 

$ 145,688.02 
21,513.45 

$ 929,973.19 
197,586.70 

Orrington  Lunt  Library 

College 

Academy 

26,816.61 

14,219.37 

30,469 . 29 
13,574.55 
10,337.08 

28,797  06 
11,848.29 
12,539.00 

36,298.57 
12,838. 70! 
15,858.94 

33,794 . 26 
13,016.97 
16,166.66 

36,950 . 30 
13,607.24 
17,813.37 

41,858.40 

12,790.06 

21,706.51 

37,909 . 63 
10,108.29 
22,565.75 

50,016.26 

14,018.25 

31,139.96 

21,848.7?-' 

15,223.98 

25,340.35 

92,888.71 

90,144.45 

35.00 

53.726 . 67 
15,060.75 
34,019.91 

24.061 .67 
16,142.04 
28,562 . 70 
81,287.49 
81,075.86 

376,637 . 59 
131,142.53 
182,147. 18 
45,910.45 
163,814.73 
240,528.49 
586,637.80 
503,668 . SO 
62,520.68 

N.  IJ.  Building  & City  Univ’  Gen’l. . 

Law  School 

Pharmacy  School  

Dental  School 

Medical  School 

Woman’s  Medina!  School 

15,628.60 

35,121.50 

17,454.31 

30,684.26 

9,848.35 

19,853.40 
30,313.99 
17,640.34 
32,963 . 1 1 
10,935.50 

18,829.77 

25,180.81 

68,162.44 

35,785.47 

10,346.68 

14,026.23 
20,414.27 
50,001.71 
43,268.97 
8,570 . 00 

16,762.09 
23,622 . 69 
59,227 . 60 
35,239.90 
7,078.81 

17,076.80 
14,945.16 
34,520.47 
40,803 . 64 
4,702.74 

15,266.02 

17,883.41 

86,639.97 

48,070.43 

5,453.71 

15,005.80 

19,143.61 

78,814.76 

65,632.71 

4,949.89 

Yearly  Income  Receipts 

Receipts  on  Sundry  Accounts  . . 

♦Total  Yearly  Receipts 

* 232,241.02 
275,498 . 63 

$ 202,285.88 
253,746.10 

$ 272,398.65 
1,156,035.26 

$ 307,049.06 
154,176.28 

$ 318,140.56 
119,432.37 

$ 303,363.43 
84,727.78 

$ 376,653.60 
677,939.68 

$ 396,583.03 
461,315.98 

$ 510,714.29 
334,361.79 

$ 501,138.56 
165,459.43 

$3,420,568.14 

3,682,693.30 

$ 507,739.65 

$ 456,031.98 

$1,428,433.91 

$ 461,225.34 

$ 437,572.93 

388,091 .21 

1,054,593.34 

$ 857,899.01 

* 845,076.08 

$ 666,597.99 

$7,103,261 .44 

“1 

Cash  Disbursements. 

Sept.  1,  1894, 

TO 

Sept.  1,  1895. 

Sept.  1,  1895, 

TO 

Sept.  1,  1896. 

Sept.  1,  1896, 

TO 

Sept.  1,  1897. 

Sept.  1,  1897, 

TO 

July  1,  1898. 

July  1,  1898, 

TO 

July  1,  1899. 

July  1,  1899, 

TO 

July  1,  1900. 

July  1,  1900, 

TO 

July  1,  1901. 

July  1,  1901, 

TO 

July  1,  1902. 

July  1,  1902, 
TO 

July  1,  1903. 

t 

July  1,  1903, 

TO 

June  1 , 1904. 

Sept.  1,  1894, 

TO 

June  1,  1904. 

University  General 

Willard  Hall 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

$ 10,500.01 
20,187.91 

$ 12,525.61 
17,533.81 
3,056 . 59 
60,174.41 
18,732.00 
10,337.08 

$ 19,569.31 
19,109.95 
2,610.04 

61.118.43 

19.056.44 
12,539.00 

$ 33,220.40 
16,747.79 
3,848.60 
75,078.30 
17,591 .85 
15,858.94 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

$ 30,689.03 
17,907.35 
3,870.28 
80,829.26 
19,896.30 
16,576.06 

$ 24,108.00 
20,253.77 
3,822.94 
85,410.63 
20,411.85 
17,411 .81 

$ 41,303  27 
20,894.63 
4,887.84 
98,284 . 40 
19,380.2?- 
19,984 . 05 

$ 62,164.76 
24,002.95 
6,342 . 00 
105,297.60 
23,127.40 
24,288.21 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

1 1 
12 

$ 112,086.56 
23,670 . 42 
5,775 . 96 
110,635.05 
21,146.39 
32,254 . 72 
23,670  42 
26,556.97 
25,081 .77 
65,787.93 
83,921.65 
8,820.03 

$ 108,081.34 
22,550.85 
11,389.40 
106,475.41 
19,683.09 
25,993.18 
33,927 . 45 
25,219.62 
23,274.13 
57,464 . 38 
70,728.  Hi 

$ 454,248.29 
202,859.43 
45,603.65 
849,967.26 
198,718.55 
175,243.05 
57,597.87 
198,830.28 
207,599 . 66 
507,991 .07 
483,927.45 
101,570.15 

Orrington  Lunt  Library  . 

College 

Academy 

School  of  Music 

N.  U.  Building  & City  Univ’  Gen’l.. 

Law  School 

Pharmacy  School 

Dental  School 

Medical  School 

Woman’s  Medical  School  . . . . 

66,663 . 77 
19,692.89 

16,664.06 
31,784.22 
23,397 . 18 
29,756.31 
8,692 . 23 

17,694.92 
33,639 . 35 
22,931 .02 
35,352.39 
9,221.17 

17,798.41 
30,462.88 
07,905.03 
32,665.07 
9,849 . 65 

15,765.72 

26,324.88 

47,918.52 

31,928.77 

18,317.25 

19.236.22 

25.257.23 
41,975.57 

33.113.29 

12.634.29 

19,766.08 
23,670  69 
48,473.07 
53,008.10 
12,561.79 

20,183.3£ 
23,566.05 
67,1 78. 6S 
53,933.16 
10,313.30 

19,944.93 

24,538.46 

64,959.69 

59,520.55 

11,160.44 

Yearly  Income  Disbursements 

1 Msbursements  on  Sundry  Accts  . 

♦Total  Yearly  Disbursements 

13 

$ 227,338.58 
279,625.85 

$ 241,198.35 
213,992.11 

$ 292,684.21 
1,149,848.70 

$ 302,601.02 
125,882.80 

$ 301,984.94 
158,629.00 

$ 328,898.73 
56,268.99 

$ 379,909.01 
683,450.59 

$ 425,346.99 
1 423,418.40 

13 

$ 539,407.87 
331,565  85 

$ 504,787.01 
166,572.54 

$3,544,156.71 
3,589,254 . 83 

* 506,964.43 

$ 455,190.46 

$1,442,532.91 

$ 428,483.82 

$ 460,613.94 

$ 385,107.72 

$1,063,359.60 

$ 848,765.39 

$ 870,973.72 

$ 671,359.55 

$7,133,411  .54 

* I >1°  not  include  office  clearances,  except  in  1903  and  1904.  f Department  Disbursements  of  1903-4  are  net,  sales  and  rebates  having  been  deducted. 


CASH  STATEMENT. 


Sept.  1,  1894  — Gash  Balance  on  hand 

Receipts  for  the  period 

Disbursements  for  the  period 

June  l,  1901  \pparent  overdraft. . . . 

$7,133,411 .54 

S 1,843.69 

7,103,261.44 

28,306.41 

$7,133,411 .54 

$7,133,411.54 

© CO  OQ  05  GT  rt- 


RECEIPTS  AND  TOTAL  YEARLY  CASH  DISBURSEMENTS 
TEMBER  i,  1894,  TO  JUNE  1,  1904. 

dget  Income  Disbursements,  also  Annual  Cash  Receipts  and 
jndry  Asset  and  Liability  Accounts. 


July  1,  1898, 

TO 

July  1,  1899. 

July  1,  1899, 

TO 

July  1,  1900. 

July  1,  1900, 

TO 

July  1,  1901. 

July  1,  1901, 

TO 

July  1,  1902. 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

July  1,  1902, 

TO 

July  1,  1903. 

July  1,  1903, 

TO 

June  1,  1904. 

Sept.  1,  1894, 

TO 

June  1,  1904. 

$ 95,982.01 
16,649.63 

$ 101,380.33 
21,503.38 

$ 107,370.42 
19,614.73 

$ 124,434.97 
18,017.02 

$ 147,787.03 
22,271 .52 

8 145,688.02 
21,513.45 

8 929,973.19 
197,586.70 

33,794 . 20 
13,016.97 
16,166.66 

36,950.30 

13,667.24 

17,813.37 

41,858.40 
12,790  06 
21,700.51 

37,909 . 63 
10,108.29 
22,565 . 75 

50,016.20 

14,018.25 

31,139.96 

21,848.78 

15,223.98 

25,340.35 

92,888.71 

90,144.45 

35.00 

53.726.67 
15,060.75 
34,019.91 

24.061 .67 
16,142.04 
28,562 . 70 
81,287.49 
81,075.86 

376,637 . 59 
131,142 .53 
182,147.18 
45,910.45 
163,814.73 
240,528.49 

586.637 . 80 

503.668.80 
62,520.68 

16,762.09 
23,622 . 69 
59,227 . 60 
35,239.90 
7,678.81 

17,076.80 
14,945.16 
34,520.47 
40,803.64 
4,702 . 74 

15,206.02 

17,883.41 

86,639.97 

48,070.43 

5,453.71 

15,005.80 

19,143.61 

78,814.76 

65,632.71 

4,949.89 

$ 318,140.56 
119,432.37 

$ 303,363.43 
84,727.7 8 

$ 376,053.60 
677,939.68 

$ 390,583.03 
461,315.98 

8 510,714.29 
334,361.79 

8 501,138.56 
165,459.43 

$3,420,568.14 

3,682,693.30 

$ 437,572.93 

388,091 .21 

1,054,593.34 

$ 857,899.01 

8 845,076.08 

8 666,597.99 

$7,103,261.44 

July  1,  1898, 

TO 

July  1,  1899. 

July  1,  1899, 

TO 

July  1,  1900. 

July  1,  1900, 

TO 

July  1,  1901. 

July  1,  1901, 

TO 

July  1,  1902. 

July  1,  1902, 
TO 

July  1,  1903. 

t 

July  1,  1903, 

TO 

June  1,  1904. 

Sept.  1,  1894, 

TO 

June  1,  1904. 

S 30,689.03 

17.907.35 
3,870.28 

80,829 . 26 

19.896.36 
16,576.06 

$ 24,108.00 
20,253.77 
3,822.94 
85,410.63 
20,411.85 
17,411 .81 

$ 41,303  27 
20,894 . 63 
4,887.84 
98,284 . 4C 
19,380.28 
19,984.05 

$ 62,164.76 
24,002.95 
6,342.00 
105,297.60 
23,127.40 
24,288.21 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

« 112,086.56 
23,670.42 
5,775.96 
110,635.05 
21,146.39 
32,254.72 
23,670  42 
26,556.97 
25,081.77 
65,787.93 
83,921.65 
8,820.03 

$ 108,081.34 
22,550.85 
11,389.40 
106.475.41 
19,683.09 
25,993.18 
33,927.45 
25,219.62 
23,274.13 
57,464 . 38 
70,728.16 

$ 454,248.29 
202,859.43 
45,603.65 
849,967.26 
198,718.55 
175,243.05 
57,597.87 
198,830.28 
267,599 . 66 
507,991.07 
483,927.45 
101,570.15 

19.236.22 

25.257.23 
41,975.57 

33.113.29 

12.634.29 

19,766.08 
23,670  69 
48,473 . 07 
53,008.10 
12,561.79 

20,183.35 

23,566.05 

67,178.68 

53,933.16 

10,313.30 

19,944.93 

24,538.46 

64,959.69 

59,520.55 

11,160.44 

$ 301,984.94 
158,629.00 

$ 328,898.73 
56,268.99 

$ 379,909.01 
683,450.59 

$ 425,346.99 

1 423,418.40 

13 

$ 539,407.87 
331,565  85 

$ 504,787.01 
166,572.54 

$3,544,156.71 

3,589,254.83 

$ 460,613.94 

$ 385,167.72 

$1,063,359.60 

$ 848,765.39 

$ 870,973.72 

$ 671,359.55 

$7,133,411.54 

1903-4  are  net,  sales  and  rebates  having  been  deducted. 


A careful  study  of  Statement  No.  6 will  give  you  a condensed  history  of 
the  remarkable  development  of  the  University  during  the  past  ten  years. 
The  increase  in  number  of  students,  as  evidenced  by  increased  income  in  the 
various  departments,  in  the  past  two  years  of  President  James’  administra- 
tion, is  most  worthy  of  marked  attention.  In  examining  this  exhibit  please 
remember  that  the  figures  for  the  present  year  cover  only  eleven  months. 
Note  also  that  in  1897  and  1898  the  date  of  the  beginning  of  the  fiscal  year 
was  changed  from  September  to  July. 

During  the  period  covered  by  this  exhibit  the  educational  departments 
have  created  a total  deficit  of  $123,588.57.  In  the  year  1894-5  the  educa- 
tional departments  had  a small  credit  balance.  In  1898-9  a credit  balance 
of  $16,155.62.  All  other  years  show  a deficit,  the  largest  being  in  1895-6, 
amounting  to  $38,912.47. 

The  budget  deficit  of  $123,588.57  at  first  thought  may  cause  alarm  and 
create  a demand  for  retrenchment.  It  certainly  is  not  a thing  to  be  coveted. 
It  shows  the  urgent  need  of  increased  unrestricted  endowment.  This  is  the 
dark  side  of  our  condition.  There  is  a bright  side.  The  increase  in  the  value 
of  the  books  in  the  Orrington  Lunt  Library  and  the  equipment  in  the  College 
of  Liberal  Arts  alone  over  their  estimated  value  of  ten  years  ago,  is  nearly 
equal  to  the  entire  deficit  of  all  the  educational  departments  for  the  period 
named.  There  has  been  a corresponding  increase  in  the  value  of  the  equip- 
ment in  every  department. 

But  it  may  be  fairly  said  that  general  equipment,  though  valuable  and 
necessary  assets,  are  not  available  for  debt  paying  purposes.  This  is  true. 
But  look  at  the  comparative  value  of  our  non-productive  real  estate  and 
other  assets  exclusive  of  property  educational,  both  real  and  personal;  I give 
you  book  values  from  the  General  Ledger. 


ASSET  ACCOUNTS. 

Balance 
Sept.  1,  1894 

Balance 
June  1,  1904 

Increases 

Decrease 

Cash  on  hands  

$ 1,843.69 

680,712.26 
1,656,239.67 
96,486.09 
19,746.68 

$1,843.69 

Non-productive  real  estate 

Productive  real  estate 

Securities  and  Bills  Receivable 

Accounts  Receivable 

Total  September  1st,  1894  

“ June  1st,  1904  

Net  increase  in  the  above  assets  for 
the  period 

$ 834,146.89 
3,388,436.41 
179,637.54 
36,473.95 

8 153,434.63 
1,732,196.74 
83,151.45 
16,727.27 

2,455,028.39 

4,438,694.79 

1,983,666.40 

LIABILITY  ACCOUNTS. 

Overdraft  at  Bank 

128,306 . 41 
1,681,375.00 
138,224.79 
27,673.79 

$28,306 .41 
1,425,900.13 
78,826.05 
23,310.58 

Bills  Payable 

Trust  Funds 

Accounts  Payable 

Total  September  1st,  1894 

“ June  1st,  1904 

“ Increase  in  the  above  liability 
for  the  period 

$ 255,474.87 
59,398.74 
4,363.21 

319,236.82 

1,875,579.99 

1,556,343.17 

The  above  statement  shows; 

1st.  The  increased  value  in  such  assets  as  listed  for  the  period  to  be 

2nd.  The  increased  liabilities  as  listed  (including  all  the  liability  of  the  Univer- 
sity), for  the  period  to  be 


1,983,666.40 

1,556,343.17 


Net  amount  passed  to  the  profit  account  for  the  period 
Deduct  from  this  the  Budget  loss  for  the  period  of  . . 


427,323.23 

123.588.27 


Net  profit  in  surplus  account  for  the  period  of 


303  734.96 


You  will  note  that  in  the  foregoing  statement  I have  not  enumerated 
the  present  educational  property  and  its  equipment,  and  do  not  show  the 
increased  value  of  these  items  for  the  period  named.  Let  me  repeat,  how- 
ever, that  the  results  of  the  new  inventory  of  the  equipment  in  our  educa- 
tional departments  show  a marked  increase  in  value;  said  increase  in  the  Col- 
lege of  Liberal  Arts  alone  almost  equals  the  entire  deficit  for  the  last  ten 
years.  These  inventories  are  being  prepared  with  great  care  and  represent 
not  the  cost  value  of  our  equipment  but  its  present  usable  value. 

Note  also  that  the  valuation  on  tne  non-productive  real  estate  and  pro- 
ductive real  estate  is  that  of  1902.  A recent  valuation  has  been  placed  on 
our  non-productive  real  estate.  This  shows  a material  increase  in  value  over 
the  valuation  used  above.  During  the  last  two  years  many  of  our  lease- 
holds have  been  revalued,  and  when  the  increased  value  of  the  property 
thereby  represented  has  been  written  in  the  books  the  surplus  account  for 
the  period  referred  to  will  approximate  $500,000.  It  is  only  fair  to  add  that 
certain  items  in  securities  and  in  bills  and  accounts  receivable  should  be 
charged  off,  or  carried  into  a suspense  account.”  These  matters  will  be 
gone  into  detail  in  my  annual  report  after  they  have  been  acted  upon  by  the 
Executive  Committee. 

If  I were  to  take  into  account  the  increased  values  of  our  buildings  used 
for  educational  purposes  and  for  the  lands  they  stand  on,  the  gain  referred 
to  during  the  period  named  would  be  greatly  increased,  perhaps  by  $500,000, 
but  I have  preferred  to  refer  to  only  what  may  be  termed  commercial  assets 
as  distinct  from  educational  assets. 

Every  reasonable  effort  should  be  made  during  the  coming  year  to  keep 
within  the  income.  No  extension  of  the  present  scope  of  educational  work 
should  be  undertaken  unless  additional  income  is  provided,  yet  to  my  mind 
any  decrease  from  our  present  standard  would  be  a serious  blunder  and  soon 
result  in  a lessening  income  from  tuition,  which  would  more  than  off-set  the 
saving. 

In  this  connection  it  is  well  to  note  that  many  new  buildings  are  needed 
on  this  campus.  Recitation  Halls,  Laboratories,  etc.,  are  now  unduly  crowded. 
Yet  bear  this  in  mind,  if  some  generous  friend  should  erect  a new  building  for 
us  it  would  be  necessary  to  appropriate  in  the  budget  for  its  annual  main- 
tenance; on  the  average  this  is  equal  to  4 per  cent  of  its  cost.  Such  gifts  are 
greatly  needed  and  are  greatly  desirable.  They  increase  assets,  but  they  also 
increase  operating  expenses.  The  great  need  of  the  Institution  is  increased 
unrestricted  endowment. 


STATEMENT  No.  7. 


STATEMENT  OF  ASSETS  AND  LIABILITIES 

June  i,  1904. 


ASSETS. 

Buildings  and  Lands  used  for  educa- 
tional purposes $3,010,687 . 75 

Libraries,  Museum  and  Sundry  Equip- 
ments   334,077 . 09 

Non-Productive  Real  Estate  834,146.89 

Productive  Real  Estate  ...  3,388,436.41 

Securities  and  bills  receivable  179,637.54 

Accounts  receivable  36,473.95 

Cashiers’  balances.  3,251.31 


Total  assets $7,786,710  94 

LIABILITIES  PAYABLE. 

Bills  payable  $1,681,375.00 

Accounts  payable  27,673.79 

Trust  funds 138,224.79 

Overdraft  at  bank 28,306.41 

Total  liabilities  payable  1,875,579.99 

$5,911,130.95 

Many  increases  in  the  above  assets  will  appear  when  the  trial  balance 
for  the  entire  year  is  published  in  the  annual  report,  arising  from  increased 
values,  etc.,  and  some  decreases  also,  due  to  charging  off  certain  accumulated 
items  (worthless  or  doubtful)  in  securities  and  bills  receivable. 

While  it  is  only  just  to  the  University  that  fair  valuation  should  be  placed 
on  buildings  and  lands  devoted  to  educational  purposes,  and  especially  on  li- 
braries, museums  and  equipment,  yet  in  published  reports  attention  should 
be  directed  to  the  fact  that  this  large  portion  of  its  assets  is  not  available 
for  income,  but  that  large  annual  expenditures  are  necessary  to  keep  it  in 
condition  for  use.  If  this  is  not  done  the  public  may  gain  an  erroneous 
impression  of  the  assets  of  the  University. 

In  closing  this  skeleton  report  permit  me  to  say  a few  words  about  the 
Business  Manager’s  office.  A year  or  more  ago  the  Executive  Committee 
employed  Mr.  S.  W.  Hunt,  Public  Accountant,  to  devise  and  install  a mod- 
ern method  of  accounting.  His  system  is  now  fairly  complete  and  is  most 
satisfactory  and  helpful;  undoubtedly  each  new  year's  work  will  suggest  new 


ideas  and  result  in  many  minor  changes,  hut  in  the  main  I feel  safe  in  say- 
ing that  very  few  universities  have  a system  of  accounting  so  complete  and 
satisfactory  as  ours.  I,  myself  am  not  an  accountant,  but  through  my  ex- 
perience in  public  affairs  in  Evanston  learned  that  systematic  accounting  is 
an  urgent  necessity  in  every  large  enterprise.  I recommend  that  either  Mr. 
Hunt  or  some  other  equally  competent  man  be  retained  in  the  service  of  the 
University  in  the  capacity  of  supervising  accountant,  and  that  so  much  of  his 
time  be  used  as  may  be  necessary.  The  question  of  auditing  naturally  arises. 
In  the  Chicago  offices  of  the  University  about  $250,000  are  handled  annually, 
and  in  the  main  office  in  Evanston  two  or  three  times  that  amount.  Cash- 
iers and  bookkeepers  have  been  placed  under  bonds  for  the  first  time  within 
the  past  few  months.  Their  accounts  should  be  examined  frequently,  though 
at  irregular  intervals.  Every  effort  should  be  made  to  see  if  everything 
that  ought  to  go  into  their  books  has  gone  into  them.  The  books  in  the  Chicago 
offices  are  made  to  dove-tail  into  the  books  in  the  Evanston  office.  It  should 
be  seen  to  that  they  are  properly  handled.  No  trustee  or  group  of  trustees 
has  the  time  to  attend  to  this.  The  supervising  accountant  should  perform 
all  these  duties.  In  his  work  of  auditing  he  should  be  an  assistant  to  the  Trustee 
Auditor,  and  under  his  control  and  that  of  the  Finance  Committees.  In  his 
strictly  accounting  work  he  should  be  under  the  joint  control  of  the  Treas- 
urer and  Business  Manager. 

A word  about  our  method  of  auditing  and  approving  bills  will  be  instructive. 
All  bills  before  being  paid  are  passed  upon  by  the  Executive  Committee ; before 
this  they  are  carefully  examined  by  the  assistants  in  my  office;  then  they  come 
to  my  desk  for  examination,  thence  to  our  Auditor,  Mr.  Crandon. 

This  work  on  Mr.  Crandon’s  part  requires  much  time,  usually  his  entire 
Saturday  afternoon  of  each  week.  From  my  personal  knowledge  of  his  work 
gained  during  the  last  six  months  I can  safely  say  that  it  is  of  the  highest 
order.  No  paid  auditor  could  possibly  render  more  efficient  service  in  the 
examination  of  these  bills  than  Mr.  Crandon  has  given,  so  freely  and  gen- 
erously. I trust  he  will  continue  in  his  work  as  long  as  his  strength  and  health 
permit.  But  that  other  kind  of  auditing  to  which  I have  referred  is  equally 
important.  The  University  is  not  safe  without  it;  as  Business  Manager  I am 
not  safe  without  it.  It  will  cost  money,  but  it  may  save  more  than  it  costs. 
The  University  cannot  afford  to  neglect  this. 

I take  this  occasion  to  express  my  appreciation  to  the  Trustees,  espe- 
cially to  the  Auditor  and  Treasurer,  for  their  kindness,  courtesy  and  assist- 
ance so  freely  given  me  during  the  past  six  months  in  my  efforts  to  gain  an 
insight  into  the  duties  of  my  office. 


